Where

Can the Middle Class Afford to Buy a Home? November 2014

(Homeownership Affordability for 100 largest U.S. Metros Based on Population)

U.S.
Metropolitan
Area
Akron, OH
Albany, NY
Albuquerque,
NM
Allentown, PA-
NJ
Atlanta, GA
Austin, TX
Bakersfield, CA
Baltimore, MD
Baton Rouge, LA
Bethesda-
Rockville-
Frederick, MD
Birmingham, AL
Boston, MA
Buffalo, NY
Camden, NJ
Cape Coral-Fort
Myers, FL
Charleston, SC
Charlotte, NC-
SC
Chicago, IL
Cincinnati, OH-
KY-IN
Cleveland, OH

%
affordable
to middle
class

%
affordable
to
millennials

%
affordable
to middle
class,
Oct 2013

median size
of home
affordable to
middle class

median
household
income

83%
60%

79%
46%

86%
60%

1350
1400

51,000
58,000

median
household
income,
millennial
households
only
45,000
44,000

67%

53%

68%

1600

49,000

38,000

65%
71%
40%
61%
67%
78%

61%
59%
22%
47%
57%
71%

70%
75%
50%
62%
66%
80%

1450
1750
1800
1400
1300
1700

54,000
55,000
62,000
46,000
69,000
51,000

50,000
43,000
47,000
37,000
59,000
42,000

66%
80%
45%
68%
79%

48%
74%
39%
60%
64%

65%
82%
41%
68%
79%

1400
1400
1300
1350
1450

96,000
48,000
69,000
50,000
68,000

75,000
42,000
63,000
42,000
53,000

57%
59%

50%
48%

62%
62%

1450
1650

46,000
51,000

40,000
42,000

66%
67%

58%
58%

70%
73%

1700
1250

53,000
60,000

45,000
52,000

79%
79%

69%
71%

83%
82%

1500
1400

54,000
49,000

44,000
39,000

Note: The total monthly cost includes the mortgage payment assuming a 4.2% 30-year fixed rate
mortgage (versus 4.5% in the October 2013 calculation) with 20% down, property taxes based on
average metro property tax rate, and insurance. We chose 31% of income as the affordability cutoff to
be consistent with government guidelines for affordability. Both the Federal Housing Administration and
the Home Affordable Modification Program use 31% of pre-tax income going toward monthly housing
payments for assessing whether a home is within reach for a borrower. We looked at all for-sale homes
on Trulia on November 7, 2014. Millennial households are those where the reference person (the head
of household) is less than 35 years old.



Where Can the Middle Class Afford to Buy a Home? November 2014
(Homeownership Affordability for 100 largest U.S. Metros Based on Population)

U.S.
Metropolitan
Area
Colorado
Springs, CO
Columbia, SC
Columbus, OH
Dallas, TX
Dayton, OH
Denver, CO
Detroit, MI
Edison-New
Brunswick, NJ
El Paso, TX
Fairfield County,
CT
Fort Lauderdale,
FL
Fort Worth, TX
Fresno, CA
Gary, IN
Grand Rapids,
MI
Greensboro, NC
Greenville, SC
Hartford, CT
Honolulu, HI
Houston, TX
Indianapolis, IN
Jacksonville, FL

median size
of home
affordable to
middle class

median
household
income

median
household
income,
millennial
households
only

%
affordable
to middle
class

%
affordable
to
millennials

%
affordable
to middle
class,
Oct 2013

65%
79%
77%
46%
85%
45%
79%

50%
69%
69%
35%
79%
33%
73%

66%
83%
82%
53%
85%
55%
83%

1900
1700
1450
1800
1400
1400
1050

58,000
48,000
54,000
57,000
47,000
62,000
40,000

48,000
38,000
45,000
46,000
38,000
50,000
34,000

60%
65%

48%
53%

57%
65%

1400
1500

77,000
40,000

65,000
35,000

43%

33%

36%

1350

81,000

66,000

57%
62%
51%
81%

50%
53%
32%
72%

62%
66%
52%
84%

1200
1800
1350
1500

50,000
57,000
44,000
50,000

44,000
47,000
33,000
40,000

76%
73%
71%
66%
38%
46%
79%
72%

68%
60%
61%
55%
25%
36%
73%
63%

81%
71%
71%
65%
40%
56%
83%
74%

1550
1450
1650
1350
700
1850
1700
1550

50,000
43,000
45,000
65,000
73,000
57,000
51,000
50,000

42,000
32,000
38,000
54,000
56,000
46,000
43,000
43,000

Note: The total monthly cost includes the mortgage payment assuming a 4.2% 30-year fixed rate
mortgage (versus 4.5% in the October 2013 calculation) with 20% down, property taxes based on
average metro property tax rate, and insurance. We chose 31% of income as the affordability cutoff to
be consistent with government guidelines for affordability. Both the Federal Housing Administration and
the Home Affordable Modification Program use 31% of pre-tax income going toward monthly housing
payments for assessing whether a home is within reach for a borrower. We looked at all for-sale homes
on Trulia on November 7, 2014. Millennial households are those where the reference person (the head
of household) is less than 35 years old.



Where Can the Middle Class Afford to Buy a Home? November 2014
(Homeownership Affordability for 100 largest U.S. Metros Based on Population)



U.S.
Metropolitan
Area
Kansas City,
MO-KS
Knoxville, TN
Lake County-
Kenosha
County, IL-WI
Lakeland-
Winter Haven,
FL
Las Vegas, NV
Little Rock, AR
Long Island, NY
Los Angeles, CA
Louisville, KY-IN
Memphis, TN-
MS-AR
Miami, FL
Middlesex
County, MA
Milwaukee, WI
Minneapolis-St.
Paul, MN-WI
Nashville, TN
New Haven, CT
New Orleans, LA
New York, NY-
NJ

%
affordable
to middle
class

%
affordable
to
millennials

%
affordable
to middle
class,
Oct 2013

median size
of home
affordable to
middle class

median
household
income

median
household
income,
millennial
households
only

79%
67%

71%
54%

80%
67%

1400
1550

55,000
47,000

45,000
36,000

62%

49%

70%

1350

68,000

50,000

75%
68%
79%
52%
22%
79%

71%
59%
73%
41%
17%
70%

78%
72%
80%
54%
24%
82%

1550
1500
1600
1300
1250
1450

43,000
50,000
47,000
90,000
54,000
50,000

40,000
44,000
42,000
81,000
48,000
41,000

68%

51%

69%

1650

45,000

33,000

41%

40%

51%

1150

41,000

40,000

50%
66%

43%
51%

51%
70%

1350
1300

81,000
51,000

73,000
40,000

69%
56%
62%
75%

61%
50%
47%
67%

75%
64%
58%
76%

1500
1650
1250
1550

66,000
52,000
58,000
45,000

56,000
47,000
43,000
37,000

25%

28%

25%

1050

57,000

60,000

Note: The total monthly cost includes the mortgage payment assuming a 4.2% 30-year fixed rate
mortgage (versus 4.5% in the October 2013 calculation) with 20% down, property taxes based on
average metro property tax rate, and insurance. We chose 31% of income as the affordability cutoff to
be consistent with government guidelines for affordability. Both the Federal Housing Administration and
the Home Affordable Modification Program use 31% of pre-tax income going toward monthly housing
payments for assessing whether a home is within reach for a borrower. We looked at all for-sale homes
on Trulia on November 7, 2014. Millennial households are those where the reference person (the head
of household) is less than 35 years old.



Where Can the Middle Class Afford to Buy a Home? November 2014
(Homeownership Affordability for 100 largest U.S. Metros Based on Population)




U.S.
Metropolitan
Area
Newark, NJ-PA
Oakland, CA
Oklahoma City,
OK
Omaha, NE-IA
Orange County,
CA
Orlando, FL
Palm Bay-
Melbourne-
Titusville, FL
Peabody, MA
Philadelphia, PA
Phoenix, AZ
Pittsburgh, PA
Portland, OR-
WA
Providence, RI-
MA
Raleigh, NC
Richmond, VA
Riverside-San
Bernardino, CA
Rochester, NY
Sacramento, CA

%
affordable
to middle
class

%
affordable
to
millennials

%
affordable
to middle
class,
Oct 2013

median size
of home
affordable to
middle class

median
household
income

52%
41%

31%
27%

52%
42%

1600
1150

71,000
76,000

median
household
income,
millennial
households
only
52,000
61,000

72%
68%

63%
61%

75%
73%

1600
1500

49,000
54,000

42,000
44,000

26%
65%

17%
54%

23%
69%

1100
1500

76,000
47,000

60,000
39,000

75%
47%
65%
61%
72%

64%
33%
58%
53%
70%

78%
43%
69%
68%
73%

1450
1250
1300
1600
1400

47,000
68,000
56,000
51,000
50,000

37,000
55,000
48,000
44,000
47,000

51%

36%

56%

1450

59,000

48,000

58%
67%
67%

37%
50%
57%

52%
69%
69%

1300
1900
1650

55,000
61,000
57,000

41,000
48,000
48,000

44%
83%
47%

34%
75%
33%

49%
76%
51%

1400
1400
1300

53,000
51,000
58,000

46,000
39,000
46,000

Note: The total monthly cost includes the mortgage payment assuming a 4.2% 30-year fixed rate
mortgage (versus 4.5% in the October 2013 calculation) with 20% down, property taxes based on
average metro property tax rate, and insurance. We chose 31% of income as the affordability cutoff to
be consistent with government guidelines for affordability. Both the Federal Housing Administration and
the Home Affordable Modification Program use 31% of pre-tax income going toward monthly housing
payments for assessing whether a home is within reach for a borrower. We looked at all for-sale homes
on Trulia on November 7, 2014. Millennial households are those where the reference person (the head
of household) is less than 35 years old.



Where Can the Middle Class Afford to Buy a Home? November 2014
(Homeownership Affordability for 100 largest U.S. Metros Based on Population)



%
%

affordable affordable
U.S. Metropolitan to middle
to
Area
class
millennials

Salt Lake City, UT

San Antonio, TX
San Diego, CA
San Francisco, CA
San Jose, CA
Seattle, WA
Springfield, MA
St. Louis, MO-IL
Syracuse, NY
Tacoma, WA
Tampa-St.
Petersburg, FL
Toledo, OH
Tucson, AZ
Tulsa, OK
Ventura County,
CA
Virginia Beach-
Norfolk, VA-NC
Warren-Troy-
Farmington Hills,
MI
Washington, DC-
VA-MD-WV

%
affordable
to middle
class,
Oct 2013

median size
of home
affordable to
middle class

median
household
income

62%
45%
25%
15%
30%
52%
67%
79%
68%
62%

50%
33%
18%
16%
27%
41%
54%
70%
53%
46%

65%
57%
28%
14%
31%
55%
61%
81%
67%
68%

1700
1700
1100
1050
1200
1350
1300
1400
1450
1500

62,000
51,000
61,000
86,000
91,000
71,000
52,000
53,000
49,000
58,000

median
household
income,
millennial
households
only
50,000
41,000
52,000
90,000
87,000
61,000
42,000
46,000
37,000
47,000

69%
81%
59%
77%

65%
66%
35%
67%

73%
85%
66%
80%

1350
1350
1500
1600

45,000
44,000
44,000
48,000

41,000
30,000
30,000
40,000

33%

20%

32%

1250

78,000

63,000

63%

49%

66%

1500

55,000

44,000

68%

59%

71%

1350

61,000

50,000

63%

48%

63%

1500

88,000

71,000

Note: The total monthly cost includes the mortgage payment assuming a 4.2% 30-year fixed rate
mortgage (versus 4.5% in the October 2013 calculation) with 20% down, property taxes based on
average metro property tax rate, and insurance. We chose 31% of income as the affordability cutoff to
be consistent with government guidelines for affordability. Both the Federal Housing Administration and
the Home Affordable Modification Program use 31% of pre-tax income going toward monthly housing
payments for assessing whether a home is within reach for a borrower. We looked at all for-sale homes
on Trulia on November 7, 2014. Millennial households are those where the reference person (the head
of household) is less than 35 years old.



Where Can the Middle Class Afford to Buy a Home? November 2014
(Homeownership Affordability for 100 largest U.S. Metros Based on Population)

%
%

affordable affordable
U.S. Metropolitan to middle
to
Area
class
millennials

West Palm Beach,

FL
Wilmington, DE-
MD-NJ
Worcester, MA

%
affordable
to middle
class,
Oct 2013

median size
of home
affordable to
middle class

median
household
income

median
household
income,
millennial
households
only

52%

44%

58%

1300

51,000

43,000

77%
72%

68%
54%

76%
65%

1550
1400

61,000
65,000

54,000
50,000

Note: The total monthly cost includes the mortgage payment assuming a 4.2% 30-year fixed rate
mortgage (versus 4.5% in the October 2013 calculation) with 20% down, property taxes based on
average metro property tax rate, and insurance. We chose 31% of income as the affordability cutoff to
be consistent with government guidelines for affordability. Both the Federal Housing Administration and
the Home Affordable Modification Program use 31% of pre-tax income going toward monthly housing
payments for assessing whether a home is within reach for a borrower. We looked at all for-sale homes
on Trulia on November 7, 2014. Millennial households are those where the reference person (the head
of household) is less than 35 years old.